The AUD/USD has recently encountered strong resistance at around 0.6650, causing its upward momentum to pause. In order to sustain its short-term uptrend, the pair must successfully break above this key barrier.
The current trend seems to favor the AUD/USD moving higher, as indicated by the series of rising peaks and troughs since hitting a low on April 19. However, breaking decisively above the resistance at 0.6650 is crucial for the pair to continue its upward trajectory.
A decisive break would involve a significant price movement, such as a long green candlestick closing near its high or three consecutive green candlesticks surpassing the resistance level. If this occurs, the AUD/USD could potentially reach the May 8 high at 0.6667 and even target 0.6690, following a Measured Move pattern formed since April 19.
Measured Moves typically consist of three waves labeled A, B, and C, with wave C expected to be of similar length to wave A or a Fibonacci 0.681 ratio of A. While wave C has already hit the Fibonacci target, it could also reach the level of C=A at 0.6690.
Conversely, a breakthrough below the red trendline would indicate a bearish signal and a possible shift in the short-term trend.